I FOUND A WORKAROUND FOR THE 2023 QSBS GLITCH. Entering QSBS info is broken in TT 2023. If you follow the program's procedure the result on Form 8949 is no gain adjustment: i.e. you are paying full tax on the QSBS income.
This approach works. In the step-by-step procedure for manual stock sales, enter the stock sale info for the QSBS shares as if they were not QSBS: on the screen where the "this is small business stock" check box occurs, ignore that check-box and instead check "none of the above" at the bottom of the list. Complete entry of all of your QSBS stock sales.
Then, switch to forms mode, and find the Form 1099-B worksheet that contains the stock sales that should be QSBS. Under this worksheet in the forms list you will see a Capital Asset Sales worksheet: open this. You will see a section for each of you stock sales. In each of these sections, make two edits. 1) in the "adjustment amount" box for each sale enter the amount by which the gain on that sale that should be reduced as a negative number. 2) in the "adjustment codes" box enter "Q" (without the quotes"). Now go the the copy of Form 8949 that contains these stock sales, and you will see that they appear correctly: the adjustment reduces the gain per QSBS rules and the correct adjustment code Q is displayed.
Also, if your QSBS income comes from a K-1, there is another glitch. QSBS income appears on K-1 line 11. If you enter the line 11 income into the TT K-1 input form, the line 11 income (i.e. QSBS) income is included in the Schedule E income totals. This means you are taxed on this income as ordinary income. Hence you need to leave line 11 on the K-1 entry form blank and enter the QSBS income into the Capital Asset Sales worksheet as described above.
Todd Hixon
Long time TT user, rather disappointed with TT-23
